Coronavirus disruption tips Van Elle into the red

Aaron Morby 2 years ago
Share

Piling specialist Van Elle warned this morning that disruption caused by coronavirus will see it report an overall loss in the year to April.

Frank Nelson appointed chairman designate of Van Elle
Frank Nelson appointed chairman designate of Van Elle

The firm said it would delay publication of year to April 2020 results until August in light of the practical challenges presented by the current situation.

Van Elle also revealed that former Galliford Try chief financial officer Frank Nelson had been appointed chairman designate to take over from Adrian Barden.

In a trading statement, chief executive Mark Cutler said revenue in April was 80% down on pre Covid-19 forecast levels.

He said that this meant group revenues for the year would be down just 4% at around £85m.

But the significant, adverse impact of the Covid-19 outbreak on the final six weeks of the year impacted profitability such that, subject to audit, the board expected to report an underlying pre-tax loss for the year.

At the start of June 30-40% of projects had resumed across the housing and general piling divisions, while the specialist piling, rail and geotechnical divisions were operating at  60-70% of pre Covid-19 levels due to greater exposure to infrastructure sector activity.

Cutler said: “It is encouraging to see a gradual return to work underway across our markets.

“We hope to see this trend continue in the coming weeks and are working with customers to support their plans.  

“Thanks to the actions taken to preserve cash and the commitment of our employees, we are in a strong position to manage the return to activity.

“Having been able to retain our market leading capabilities and with a strengthened financial position, we are well-placed to benefit from significant opportunities as construction markets recover and new major infrastructure investment programmes commence.”

Cutler said that while it would still take time for new project starts to gather momentum in some sectors Van Elle was encouraged by developments in its targeted infrastructure markets.

The specialist has secured preferred bidder status for its first contract on High Speed 2 and recently picked up two of the three regions on Highways England’s new four-year ground investigation framework, both of which are expected to commence during the first half of the financial year.

Latest news

Eric Wright wins tricky £52m Liverpool transformation

Contractor working with engineers at Ridge and Partners on "challenging" Stanley Lock Flight site
18 hours ago

Investment giant buys Bristol M&E contractor

RDCP Infrastructure acquires Avon Combined Electrical Services
23 hours ago

Demolition start for £50m Farnworth town centre rebuild

Caddick Construction is tipped for main works due to start in the spring
1 day ago

L&G Modular strikes deal to build 1,000 affordable homes

Modular homes business teams up with Hampshire's Vivid housing association
1 day ago

Former Erith operations director joins John F Hunt

Scott Exell named new operations director at demolition specialist John F Hunt
1 day ago

Green light for £135m Leeds twin tower resi scheme

Construction to start in New Year on 500 build-to-rent apartments
2 days ago

Mace hits 1m tonnes carbon saving target for clients

Present work pipeline betters 2026 carbon emission saving target
1 day ago

Plans in for £40m surf park at former Kent colliery

Seahive surf lagoon and health resort will be built near Deal
2 days ago

Crushed demolition worker vows to return to industry

Shannon Brasier hoping to return to construction following horror accident
2 days ago

Mount Anvil to start 900-home North London estate rebuild

Planning approval paves way for Barnsbury Estate rebuild in Islington
2 days ago

Green light for major laboratory campus in Cambridge

Developer BioMed to tender first building on 600,000 sq ft lab complex in the New Year
2 days ago

Belfast firm signs the biggest work deal yet under Project Gigabit

Fibrus to hook-up rural Cumbria to lightning-fast broadband under £108m deal
2 days ago

McLaren wins Leeds logistics park contract

Work to start imminently on warehouse complex for Firethorn Trust
3 days ago

Work restarts on £683m waste power plant after site death

Construction suspended for a week of investigations following fatality
3 days ago

Demolition starts on £135m Wigan Galleries scheme

Contractor BCEGI starts work on project to redevelop Wigan town centre
3 days ago

Amey CEO to step down following private equity buyout

Amanda Fisher to leave once business is transferred to new owners
3 days ago

New body set up to vet plant operator card schemes

Contractor trades bodies unite to tackle competency concerns over plant operator skills cards
3 days ago

Kier leads switch to hybrid battery generators

Battery units work alongside smaller generators cutting run times by nearly 60%
3 days ago

Plans in for first Leeds co-living scheme

Watkin Jones submits plan to convert old Direct Line HQ into 230 studio flats
3 days ago

Demolition worker crushed by excavator

Court hears 20-year-old woman was left with "life changing injuries"
4 days ago

Government pays £700m for 50% stake in Sizewell C

New body, Great British Nuclear, will be set up to develop pipeline of nuclear projects
4 days ago

Costain wins Heathrow Airport asset renewal deal

Firm takes early contractor involvement role in Terminal 2 baggage handling upgrade
4 days ago

Worker killed on £683m waste power plant site

Fatal collision involving heavy goods vehicle on giant north London site
4 days ago

HS2 JV shifts four Wembley Stadiums of earth in record time

EKFB team digs and hauls 15 million cu m of muck in 20 months
4 days ago

Milestone wins £300m Wiltshire highways upkeep

Ringway will hand over to Milestone in March next year
4 days ago

Low-risk business model helps Renew post record results

Renew reveals latest acquisition with £15.6m purchase of water specialist Enisca
4 days ago

London Albert Embankment hotel towers approved

Two separate hotels rising to 26 and 29 storeys approved
4 days ago

Keltbray names new director of strategic engineering

Tim Lohmann takes up newly-formed role to drive innovative engineering solutions
4 days ago

Go-ahead for £200m lithium refinery on Teesside

Work to start next year on Europe's first lithium hydroxide processing plant
5 days ago

HS2 agency workers paid the wrong wages

Payroll software problems leave workers out of pocket
5 days ago

Contractor services